Since there is huge potential for
energy trade among the SAARC member countries, as such, all countries in the
region subscribe to the need of introducing energy trade on as soon as possible
for supporting infrastructure to grow the economy for affecting the elevation of
prosperity of masses. This will also help in further industrialization in the
region through establishment of Central Dispatch Center & Transmission Systems.

While inaugurating the Fourth SAARC
Energy Ministers' Meeting at Ruposhi Bangla Hotel on September 15 2011, Prime
Minister Sheikh Hasina called upon the SAARC nations to work collectively and
undertake practical collaborative initiatives to address 'energy' crisis to
ensure sustainable development of the region. She added, "My sincere expectation
remains that you would not only consider and discuss on the broader policy
issues, but would also try to take a few practical shared measures to solve
energy problems in the region," She also said: "Such initiatives, either on
bilateral or sub-regional or regional basis, should be such that would help our
countries to address the short and medium term challenges in provisioning of
energy to our masses."

"Combined vision and joint efforts at
public and the private sector levels can mitigate the impact of climate change
and cooperation in energy sector can help south Asia for its transformation from
energy constraint to energy surplus region." This was stated by Prime Minister
of the Kingdom of Bhutan while inaugurating two-day Conference on Climate Change
and Energy Cooperation in South Asia organized by SAARC Chamber of Commerce &
Industry at Paro, Bhutan on April 21-22, 2012.

The views of two leaders of the region
are sufficient for the experts sitting at the helm of affairs in SAARC to
deliberate and take firm decisions on the issue of power crisis in South Asian
Region and suggest best possible measures for energy cooperation to meet the
challenges.

ENERGY POTENTIAL IN SAARC REGION

Pakistan and India have very rich coal
reserves and if exploited fully can be used to overcome the menace of energy
crises in the region. In Pakistan alone 184 billion tons coal is available
through which 100,000 MW of electricity can be generated for 100 years.

India and Pakistan are also rich in
hydropower as well as potential for solar and wind power generation. If tapped
properly with public private partnership with the connectivity efforts of SAARC
Chamber of Commerce and Industry, the energy can easily be traded within the
SAARC member states to end the crisis.

Nepal and Bhutan have resource
potential of 43,000 MW and 30,000 MW hydropower but due to shortage of funds as
well as non availability of modern technology and insufficient trained man power
they are unable to harness this potential which otherwise can be their major
source of income by exporting to neighboring countries.

Power generation scenario of SAARC
countries is given in the following Table 1 which shows the hydro power
potential of the region.

From above table it can be seen that
alone hydro power potential in this region is more than the total projected
power requirement which is around 300,000 MW.

The harnessing of solar energy is
growing very rapidly, it must be pursued rigorously as the region has very high
potential. Afghanistan, Pakistan and India receive abundant solar irradiation of
the order of over 2 kWh/m2 and 3,000 hours of sunshine a year.

The current market of solar energy
products is in billions of dollars and if appropriate measures are adopted the
region can probably establish leadership in this technology.

The wind speed in this region is
averagely around 10 m/sec which is very conducive for wind forms. The bellow is
the wind map and a typical wind farm.

PRESENT ENERGY CONSUMPTION COMPOSITION

Natural Gas dominates Bangladesh's
energy mix accounting for 68% of the total energy consumption. India depends
heavily on coal that accounts for 50% of total energy consumption. Afghanistan,
Maldives, Nepal and Sri Lanka rely heavily on oil. Bhutan has the highest share
of hydro power accounting for 70% of the total energy consumption. Pakistan has
a mixed bag of energy consumption which diversifies among oil products-27%,
natural gas-55% and hydro and others-18%

Energy demand in SAARC member countries
is growing at the rate of over 8.0 per cent a year, a pace that is far in excess
of the region's capacity to meet.

Since there is huge potential for
energy trade among the SAARC member countries, as such, all countries in the
region subscribe to the need of introducing energy trade on as soon as possible
for supporting infrastructure

to grow the economy for affecting the
elevation of prosperity of masses. This will also help in further
industrialization in the region through establishment of Central Dispatch Center
and Transmission Systems.

The transmission system is necessary
for the transportation of power and the central dispatch center is must for
distribution of power as per requirement of each country on agreed tariff.

ENERGY TRADE

In SAARC region there are promising and
extensive opportunities of Energy Trade and investment for which moderate
policies are required to be framed enabling brighter future and prosperity of
our citizens. The Energy can be traded by pooling all the resources and
controlled through a centralized agency and regulator.

So far as power and energy trading with
neighboring countries is concerned, presently it is based on bilateral
agreements such as India is trading with Bhutan, Nepal and Bangladesh whereas it
has recently agreed to provide 5,000 MW to Pakistan through a phased programme.
The strategies for promotion of trading can be through carrying out sector
reforms, setting up suitable institutional arrangements, public private
partnership or private sector participation, long term transmission planning and
free exchange of information.

CHALLENGES

In spite of high desire of member
states to cooperate and increase energy trade, there are numerous impediments
which need to be removed without further delay. Some of the challenges are
stated bellow.

I. BILATERAL RELATIONS: Bilateral relations between SAARC member countries
especially India and Pakistan remain a barrier for energy trading. A long
lasting, peaceful relations between Pakistan, India, Bangladesh and Afghanistan
will result in stable economies and prosperity in the region.

II. TERRORIST ACTIVITIES: Pakistan and Afghanistan are subjected to war on terror
where as Sri Lanka is also disturbed by terrorist activities that impede the
developmental activities in these countries and the region.

III. POLITICAL STABILITY. Over the times political instability in Pakistan,
Afghanistan and Bangladesh is also one of the factors hampering the progress of
development in the region.

IV. SHORTAGE OF FUNDS. Shortage of funds for exploitation of available potential
to include environment friendly resources i.e. hydro, solar and wind, etc. In
most of the SAARC these are not harnessed fully to capacity.

V. TRANSMISSION LINK & DISPATCH CENTER.
Establishment of a Transmission Link & Central
Dispatch Center, is the prerequisite for energy trade i.e. export & import of
electric power as per prioritized requirement between the SAARC member
countries, which if delayed will add to miseries of masses by subjecting them to
load shedding and reducing of employment opportunities due to slow growth of
economy.

VI. TRUST AND CONFIDENCE: Trust and confidence and reduction of political tension
within and across the countries are of prime importance for energy trading.

VII. THE FISCAL STABILITY: The fiscal stability in all SAARC member states is the key
for prosperity of the general public and development of resources potential
especially in the energy sector.

VIII. DOABLE ACTION PLAN: To promote private sector investment and participation in
energy activities in the region, there is need to work together to formulate an
achievable action plan for users of power generated through hydroelectric and
non-conventional and environment friendly energy resources.

IX. TECHNICAL PERSONNEL &
INFRASTRUCTURE: It is essential to meet
shortages of technical personnel and infrastructure support through integrated
approach between the member states.

CONCLUSION

In the energy sector this region has
tremendous opportunities and sites available for dams for hydro power, adequate
resources of oil and gas and plenty reserves of coal for thermal power, adequate
sunshine for solar power and sufficient winds for wind power, but we only lack
in will power and political leadership.

If the public of SAARC member states
unites with honesty and seriously in ending mutual conflicts between different
countries, and make synergetic effort to explore the potential resources, the
respective governments will have to change their attitudes and direction that
will encourage the investors to finance viable projects in individual member
states. This will not only change the destiny of general public but will also
make the region an example for developing countries, and we can also export the
extra power to neighboring non-SAARC member states.

In first phase the investors can
finance the feasible projects in states where there is no disturbance e.g. hydro
power projects in Bhutan and Nepal under swap mechanism or share on investment,
from where 73,000 MW of electricity can be generated and traded to other member
states.

In the second phase huge potentials of
coal in India and Pakistan can be exploited along with other environment
friendly resource potentials i.e. solar and wind in all member states but for
all this full commitment and will power is the prerequisite and that Regional
economic prosperity should take precedence over political expediency.

As stated earlier there are numerous
challenges even then we can overcome with willpower and commitment to change the
fate of our respective nations with sincerity, seriousness and with synergy. In
this regard let me cite the message of King of Bhutan, His Majesty Jigme Khesar
Namgyal Wangchuk, "Throughout my reign I will never rule you as a King. I will
protect you as a parent, care for you as a brother and serve you as a son. I
shall give you every thing and keep nothing; I shall live such a life as good
human being that you may find it worthy to serve as an example for your
children". I pray to Almighty Allah that the leaders of other SAARC nations may
also follow these golden words in letter and sprit.

The write is the Member Pakistan
Engineering Council, Former GM, Karachi Electric Supply Corporation, Pakistan.